Recession far from bottoming out, says PM Lee

Recession far from bottoming out, says PM Lee

By Imelda Saad and Lim Yun Suk

SINGAPORE : Singapore Prime Minister Lee Hsien Loong has warned that it may be too hasty to pronounce that the recession has bottomed out.

Even though the US has spoken of potential green shoots in the economy, Mr Lee noted that what has happened is that things are turning bad slower.

Speaking at the ASEAN-South Korea Summit on Tuesday, Mr Lee urged countries to persevere with reforms and consolidation, especially in support of free trade.

He said if countries heed ground pressures to “buy local”, they will be worse off. “Keeping markets open is the best way to help everyone recover and grow,” said Mr Lee.

He added that the Asia Pacific Economic Cooperation (APEC), which Singapore chairs this year, can help to keep markets open. He said APEC stands ready to work with other international groupings like the G20, which South Korea now chairs.

But even as governments focus on fixing the economy, Mr Lee pointed out that they must not neglect long-term issues like climate change.

He said regional forums like the East Asia Summit Liveable Cities Conference, which Singapore hosted last year, is a good platform for countries to exchange best practices and ideas.

He invited South Korea to consider hosting the next conference.

This is a critical year for climate change talks as the UN negotiations are scheduled to be completed by December in Copenhagen.

Meanwhile, South Korea and the 10-member ASEAN have signed a comprehensive agreement to boost investments in each other’s countries.

The agreement is significant as it is the first that ASEAN has signed with one of its dialogue partners, which also include China and Japan.

Last year, trade between the ASEAN and South Korea rose 25 per cent to US$90 billion. South Korean President Lee Myung-bak said Seoul aims to boost the amount to US$150 billion by 2015.

He said: “The leaders agreed on the following areas of future cooperation. First, the economy. With the signing of an investment agreement that took place today, all 10 members of ASEAN have now become parties to the Korea-ASEAN Free Trade Agreement - goods services and investment agreements.

“We can now officially declare that a new chapter of economic partnership is open for business.”

Analysts are confident that the deal, which marks 20 years of dialogue and cooperation, will bring about an expansion of trade in goods and investment between the two sides.

South Korea is the fourth-largest economy in Asia, while ASEAN boasts of a combined population of some 600 million people, and a combined gross domestic product of more than US$1 trillion.

Another significant outcome of the two-day summit is ASEAN’s condemnation of North Korea - denouncing Pyongyang for conducting the recent underground nuclear test and missile launches.

The statement also slammed the actions as a clear violation of the UN Security Council resolutions.

The grouping also urged all the six parties - South and North Korea, China, Japan, the US and Russia - to meet at July’s ASEAN Regional Forum in Thailand to hold talks to promote peace on the Korean peninsula.

With North Korea raising its sabre rattling in recent days, security at the summit - held on the resort island of Jeju - was tight, with missile defence and patrols in clear visibility.

It is the first time that all the ASEAN leaders have been invited to South Korea, a sign that President Lee Myung Bak is taking his ASEAN friends seriously.

In return, they gave him their support on North Korea - which was not easy since they all also have diplomatic ties with Pyongyang. - CNA /ls

Source : Channel NewsAsia - 3 June 2009

Buy Sell Rent Invest Singapore Property

Mindy Yong

(+65)91002985

mindy@mindyyong.com

URA releases first sale site at Kallang Riverside for hotel development

URA releases first sale site at Kallang Riverside for hotel development

By Tang See Kit

SINGAPORE : The Urban Redevelopment Authority (URA) has released the first sale site at Kallang Riverside for hotel development.

The 0.74-hectares land parcel will be made available on the reserve list under the Government Land Sales Programme for the first half of 2009.

URA said the plot has a permissible gross floor area of 20,917 square meters with a maximum building height of 16 storeys.

The site will have a lease period of 99 years.

Urban planners said the hotel development will cater to business travellers and tourists, and provide for complementary shops like retail and food outlets.

Earmarked as the new waterfront lifestyle precinct, the Kallang Riverside is one of the key growth areas unveiled in the Master Plan 2008.

The Master Plan is a statutory land use plan that guides physical development of the country for the next 10 to 15 years.

The plot was originally scheduled to be made available on the Reserve List in December last year. But as more time was needed to finalise the planning and development conditions of the Kallang River, the release of the site was deferred till this month.

Some market watchers said the site could yield a 300 to 380-room hotel development based on the plot ratio, and the bid price could range between S$150 and S$190 per square foot per plot ratio.

Under the Reserve List system, a site would be released for sale only if the bid meets the minimum price acceptable to the government. - CNA /ls

Source : Channel NewsAsia - 3 June 2009

Buy Sell Rent Invest Singapore Property

Mindy Yong

(+65)91002985

mindy@mindyyong.com

URA’s Kallang Riverside hotel site shrinks by half

URA’s Kallang Riverside hotel site shrinks by half
By Joyce Teo

An artist’s impression of the Kallang Riverside. The URA intended to release 1.59ha as the first hotel site, but cut it to 0.74ha based on market feedback. — PHOTO: URBAN REDEVELOPMENT AUTHORITY

THE first hotel sale site at the upcoming waterfront lifestyle district of Kallang Riverside has shrunk in size by half even before it hits the market.
The Urban Redevelopment Authority (URA) initially intended to release the 1.59ha site late last year but deferred it to this month - and then reduced the size to 0.74ha after taking into account market feedback.

It has placed the plot on the reserve list, meaning that interested developers can apply for it to be put up for tender.

The delay came after the URA said that it needed more time to finalise the detailed planning and development conditions of the site as they relate to the broader plans for the area.

Industry experts speculated at the time that the URA was taking advantage of the slower market to re-do its plans and that the site would be unlikely to attract interest even if made available then.

‘Originally, we planned for the land parcel to have a site area of 1.59ha with a gross floor area of about 45,000 sq m,’ said a URA spokesman.

But market feedback suggested that ‘a smaller hotel development is preferred’. This prompted it to scale back the site’s land area to 0.74ha and the gross floor area to 20,000 sq m, said the spokesman.

The hotel investment market remains weak but six months ago, it would have been even worse than now, said Knight Frank’s director of consultancy and research, Mr Nicholas Mak.

He estimated that bids could come in at $48 million to $58 million, or between $215 and $260 per sq ft per plot ratio.

Still, the hotel site is not likely to be snapped up immediately as it has challenges and there will be a lot of supply coming up in the market, he added.

The site has visibility as it is in a prominent spot but is not comfortably accessible to pedestrians, for instance. Still, whoever buys this site has first-mover advantage as the area is not yet developed, said Mr Mak.

‘It is an unproven hotel market,’ he added. Nearby hotels are in the red-light district of Geylang.

As part of the Greater Marina Bay district and an integral part of the city centre, the Kallang Riverside is one of the key growth areas unveiled in the latest Master Plan.

Source : Straits Times - 3 June 2009

Buy Sell Rent Invest Singapore Property

Mindy Yong

(+65)91002985

mindy@mindyyong.com

More small flats in latest build-to-order HDB launch

More small flats in latest build-to-order HDB launch

By Joyce Teo

THE Housing Board has launched a build-to-order (BTO) project with far more smaller flats than usual.

The project - Fernvale Crest - is at the junction of Jalan Kayu and Sengkang West Way and near the Fernvale and Thanggam LRT stations.

There are 700 flats - 372 three-roomers, 188 four-room units and 140 two- room flats of 45 sq m each. This is the largest number of smaller BTO flats ever offered for sale.

The two-room flats will cost $74,000 to $98,000 each, while the three-roomers will go for $116,000 to $157,000 each.

A family on a total monthly income of $1,300 buying an $85,000 two-room flat will need to pay a monthly mortgage of just $180, said HDB yesterday.

But at 5pm yesterday, there was only one application for the two-room units, against 22 for the three-room flats and 131 for the four-roomers.

The four-room units are priced from $203,000 to $250,000 each - a level that HDB says compares favourably with the comparable resale flats in Sengkang.

These comparable flats - each costing $290,000 to $360,000 - are all premium units as there are no standard resale flats in the area. Fernvale Crest is a standard project, which means it comes with minimal finishes. The prices, for instance, do not include flooring in the bedrooms.

ERA Asia Pacific associate director Eugene Lim said BTO standard flats are the most affordable kind of public housing as they target first-timers and those on a lower household income band.

‘This batch of units is priced very attractively. We reckon they are a good 5 to 8 per cent lower than last year’s prices,’ said Mr Lim.

Under the BTO scheme, flats are built only when demand hits a certain level. In the first quarter of this year, HDB launched about 1,300 new flats in two BTO projects in Punggol and Woodlands.

It plans to launch a further 2,400 BTO flats in the next two quarters.

Source : Straits Times - 3 June 2009

Buy Sell Rent Invest Singapore Property

Mindy Yong

(+65)91002985

mindy@mindyyong.com

HDB launches BTO project in Sengkang

HDB launches BTO project in Sengkang

By UMA SHANKARI

THE Housing & Development Board yesterday launched a 700-unit project at Sengkang for sale under its build-to-order (BTO) system.

Fernvale Crest, at the junction of Jalan Kayu and Sengkang West Way, comprises 140 two-room flats, 372 three-room flats and 188 four-room units.

In line with the government’s commitment to increase the supply of smaller flats during the economic downturn, 75 per cent of the Fernvale Crest flats are two-room and three-room units.

‘This is the largest number and proportion of smaller flats ever offered for sale in a BTO project,’ HDB said.

The flats are also priced below market prices so first-time buyers can afford them, it said.

Prices range from $74,000 to $98,000 for a two-room flat, $116,000 to $157,000 for a three-room flat and $203,000 to $250,000 for a four-room flat. In comparison, a four-room resale flat at Sengkang goes for $290,000 to $360,000, according to data provided by HDB.

Analysts reckon the launch will be well received.

‘We expect Fernvale Crest to be hugely popular based on the new flat types and low prices,’ said Adam Tan, a spokesman for property firm PropNex. ‘The four-room flats on offer are 35-45 per cent cheaper than others in the vicinity.’

Mr Tan expects Fernvale Crest to be at least five times subscribed.

Source : Business Times - 3 June 2009

Buy Sell Rent Invest Singapore Property

Mindy Yong

(+65)91002985

mindy@mindyyong.com

URA hotel site available on reserve list

URA hotel site available on reserve list

Land can yield 450 rooms, 33,906 sq ft commercial space

By EMILYN YAP

THE Urban Redevelopment Authority (URA) yesterday released a hotel site along Kallang River for application through the reserve list.

Sand, sea, city: Artist’s impression of Kallang Riverside waterfront. A hotel on the site, which is close to the Central Business District, can cater to business travellers and tourists, says URA
The first sale site in the new Kallang Riverside growth area comes with a 99-year lease and spans 0.74 hectare. The maximum permissible gross floor area (GFA) is 225,148 sq ft.

URA estimates that the plot can yield 450 hotel rooms and 33,906 sq ft of commercial space, though the actual mix would depend on the developer’s plans.

The development can go up to 16 storeys high and will front Kallang River. It will also be near the upcoming Sports Hub. ‘Its proximity to the Central Business District and waterfront setting makes it ideal for a hotel development that can cater to business travellers and tourists,’ URA said.

Jones Lang LaSalle Hotels executive vice-president Chee Hok Yean noted that the plot may be suitable for an economy hotel. The hotel might cater to a younger crowd, such as sports teams or tourists in town for sporting events, she said.

Knight Frank’s director of research and consultancy Nicholas Mak pointed out that the site has a good river view and may fit a three to three and a half-star hotel.

He estimates that bids may range from $48 million to $58 million, which works out to $215 to $260 per sq ft per plot ratio (psf ppr). In April, a reserve list hotel site in Short Street received a committed bid of $8.8 million, which works out to about $200 psf ppr.

Given the weak market however, Mr Mak noted that the site may not be triggered for launch this year. Hotel developers have already bought many sites in the last few years and several still remain on the reserve list, he said. Kallang in particular, is a relatively ‘unproven market’ for hotels.

Developers interested in the parcel can apply to URA for it to be put up for tender. Because of the site’s prominent location, a URA-chaired design advisory panel will guide the development team with its design.

URA had planned to release the site in December last year but later deferred it to finalise planning and development conditions. With the financial and property sectors faltering then, market watchers had felt that the site would not attract interest even if it was available.

URA also reduced the size of the hotel site last year, after market feedback indicated preference for a smaller development. The plot originally had a site area of 1.59 hectares and a GFA of about 484,376 sq ft.

Source : Business Times - 3 June 2009

Buy Sell Rent Invest Singapore Property

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Press on with reforms: PM Lee

Press on with reforms: PM Lee

He urges leaders to work together regionally and internationally

By CHUANG PECK MING

IN JEJU, SOUTH KOREA

PRIME Minister Lee Hsien Loong yesterday urged leaders at the Asean-South Korea Commemorative Summit to press on with reforms and consolidation in the fight to overcome the current global economic crisis.

Unified stand: Leaders must take a strong stance in backing free trade and globalisation, said PM Lee
But he also cautioned them against neglecting longer-term challenges, such as the threats posed by climatic changes.

Mr Lee was speaking at the final day of the two-day event hosted by South Korean President Lee Myung Bak to mark 20 years of Asean-Korea ties.

Calling on the leaders to strengthen cooperation to tackle the global downturn, he said: ‘We should not be too hasty to pronounce that the recession has bottomed or that things are getting better.’

Mr Lee sees a long haul ahead for the global economy as the structural issues that it faces would not go away on their own, and ‘which cannot be overcome with considerable efforts and considerable time’.

‘Therefore we have to persevere with reforms and consolidation,’ he said.

Mr Lee called on the leaders to work together regionally and internationally to tackle the crisis and position themselves to take advantage of the recovery when it comes.

He said that in this particularly tough time, the leaders must take a strong stand in backing free trade and globalisation.

‘There are strong ground pressures in many countries to ‘buy local’, but if we all go for ‘buy local’ policies, then all of us will be worse off,’ Mr Lee said.

Asians must constantly be reminded that it was thanks to an open policy that the region had grown so fast.

‘We must continue to keep our region open so there is no reason for our trading partners not to do the same, and to maintain their links and to develop their relationships with us,’ Mr Lee said.

He said that the G-20 would be the key forum to coordinate against the global downturn - and Singapore supports its efforts to restore stability and confidence to global markets, and keep trade flowing.

But Mr Lee added: ‘It is important that countries match words with actions and ensure they deliver on what has been committed and promised and undertaken - and make sure we continue to make progress month by month, year by year.’

He hopes that South Korea’s leadership as incoming chairman of the G-20 would see an open and consultative process, ‘taking into account the concerns of all stakeholders, big and small’.

Singapore, which is chairing Apec this year, is ready to work with G-20 members and South Korea as chairman to help keep markets open, Mr Lee said.

He noted that this is an important year for climate change policy because talks on the issue in the United Nations are due to be completed by December in Copenhagen.

‘The current global crisis can be a major distraction from the climate change issue, but it (climate change) remains a very important issue because it has the potential to cause a lot of damage to the world over the longer term - and it is an issue that needs to be addressed quite urgently because measures to it are also longer term and also take many years to show their results,’ he said.

Mr Lee urged the leaders to push for a positive outcome for the UN negotiations.

‘No single country can solve this problem, no single region can solve this problem,’ he said. ‘All countries have to work together and each country has to do its fair share, given its circumstances, and we hope countries will do each’s fair share of the burden of reducing emissions.’

Thus Mr Lee welcomed the South Korean leader’s ‘Green Growth, Green Asia’ initiative - and will back his move to start an East Asia Climate Partnership with US$200 million.

‘Such measures will help many countries to take advantage of the newest technology available in order to minimise their burden and to maximise their contribution to your common endeavours,’ he told his fellow Asean leaders.

Source : Business Times - 3 June 2009

Buy Sell Rent Invest Singapore Property

Mindy Yong

(+65)91002985

mindy@mindyyong.com

Rise in home buyers from China and India

Rise in home buyers from China and India

Indonesians’ share of Q1 buys slips; Malaysians are biggest buyers
By KALPANA RASHIWALA

(SINGAPORE) Mainland Chinese were the second largest group of overseas buyers of private homes in Singapore in the first three months of this year.
 
 
They accounted for 18 per cent of the 490 caveats lodged for private home purchases in Q1 by foreigners and Singapore permanent residents, compared with an 11 per cent share in the preceding quarter.

On the other hand, the proportion of Indonesian buyers dwindled from 24 per cent in Q4 2008 to 14 per cent, their lowest share in over a decade, according to property consulting group DTZ’s analysis of caveats captured by URA’s Realis system as at May 29.

‘This is due in part to the poorer sentiments in the upper mid-tier and luxury segments which had traditionally generated interest from the Indonesians,’ suggests DTZ’s senior director and head, SEA Research, Chua Chor Hoon.

Malaysians had the lion’s share or 26 per cent of total private homes acquired by foreigners and PRs in Q1 2009, replacing Indonesians who had enjoyed the pole position in Q4 last year.

Indians’ contribution also rose from 9 per cent in Q4 2008 to 14 per cent in Q1 2009.

DTZ reckons the rising affluence of mainland Chinese and Indians will see them playing a more significant role on the Singapore property front.

More than 80 per cent of Indians and Malaysians and 60 per cent of the mainland Chinese who invested in private homes on the island in Q1 this year were Singapore permanent residents. In contrast, only 40 per cent of Indonesians who bought in Q1 were Singapore PRs.

The Indonesians, however, seem to have bigger budgets. Forty per cent of Indonesians purchased homes above $1 million in Q1, compared with less than 30 per cent for Malaysians, mainland Chinese and Indians.

Jones Lang LaSalle head of residential Jacqueline Wong said: ‘Some private bankers are asking us for help to source for prime residential properties in Singapore for clients from India, Hong Kong and Indonesia. They generally want to buy prime properties, though not necessarily luxury. Some are looking for firesale prices, but fortunately or unfortunately, there are not many in the prime districts.’

Knight Frank executive director (residential) Peter Ow said foreign buyers from the region will return to the Singapore property market in stronger fashion once they see clearer signs of economic recovery in their home markets.

‘They want to park their money in Singapore for the usual reasons like stability and transparency; they’re waiting for clearer signs that prices are picking up before they enter the market,’ he added.
Source : Business Times - 3 June 2009

Buy Sell Rent Invest Singapore Property

Mindy Yong

(+65)91002985

mindy@mindyyong.com